A child who manipulates the truth or fabricates stories basically thinks ahead of time. They try and fit themselves in a particular situation and then from past experience try and deduce what the outcome will be. For example, if you have not allowed your child to stay up till late to watch a television show in the past, and he or she wants to watch a special show, instead of asking you they will interpret on your behalf that the answer will be no.
In a situation like that, you can try and reason out with your child, and tell them why you have set a certain rule or limitation. Also, try and be flexible on these rules as the child grows up so that they do not find the need to fabricate stories to get their way. Generally, very restrictive parents often have children who fabricate the truth to get their way.